redskins44

I can't comment on your first post because I didn't use Schweser. But is does sound incorrect - equity method should have lower equity than prop consolidation as you mentioned.

Re: dividends

dividends are considered return of capital and are used to reduce the investment in associates. It will reduce the B/S value by the [EDIT: proportionate] dividend amount. But it wil have no effect on the I/S. The dividends paid by the associate has no effect on the equity income from investment in associates.



Edited 1 time(s). Last edit at Tuesday, May 3, 2011 at 10:57PM by Iginla2010.